If you’re falling behind on your mortgage payments, you could eventually face the loss of your home. While you’re confronting this possibility, you may be receiving communications from your loan servicer about “loss mitigation.” Loss mitigation is a process designed to help you prevent the loss of your home and the severe costs associated with foreclosure.
What is foreclosure?
Foreclosure is the consequence of failing to pay your mortgage. In this court-ordered legal process, the lender takes ownership of the subject property (we represent your lender during foreclosure). If the borrower does not vacate the foreclosed property, an eviction process may follow – and depending on the situation, the borrower may still be responsible for paying outstanding mortgage debts even after they’re moved out.
Foreclosure can greatly damage your credit score, which may make it more difficult to purchase a home in the future. On behalf of your lender, your loan servicer is required to report your foreclosure to the consumer reporting agencies (Equifax®, Experian®, TransUnion®, and Innovis®). Credit damage could significantly delay when you’re again able to apply for a mortgage, again depending on the circumstances.
Worried you might miss a payment? Chat with us!
It’s important to contact us right away if you’re concerned about making your next Newrez mortgage payment. Many of us at Newrez are homeowners too, and we understand that unexpected financial troubles can happen. Give us a chance to help before you’re in too deep. On the Newrez website, log in, click “account details” and then click “chat online” on the right side of your screen to talk with one of our team members who will help you figure out next steps. We will do everything we can to keep you in your home and minimize harm to your credit score.
How can loss mitigation help?
After you’ve fallen behind your payments for 45 days, we designate one of our highly trained mortgage specialists to guide you through the loss mitigation (or “loss-mit”) process. This specialist is your Single Point of Contact, or SPOC. Your SPOC will closely review your circumstances and explain every loss-mit option available to you, both by phone and in writing.
Some loss-mit strategies, such as a loan modification, a forbearance, or a repayment plan, may allow you to stay in your home. Other loss-mit strategies, like a short sale or a deed in lieu of foreclosure, mean that you give up your home, but may minimize the negative credit effects of a foreclosure.
You can contact your SPOC during business hours by phone or email to ask questions and get help filling out forms.
Apply on our website.
The loss mit process starts with your online application.
If you haven’t set up an online account with us, visit our website and click Create an Account. Enter a username and your email address, then click on the Create Account button and follow the on-screen prompts.
Once you’ve created your account, or if you already have one, sign in and you’ll seen an Account Summary page. Click on your Loan Number to see Your Loan Details, then click on Request Payment Assistance in the upper right corner. Review the options on the Homeowner Assistance Solutions page and choose the one that best applies to you. Click Get Started to apply. Reach out to your SPOC if you need help.
What documents will I need?
During the loss-mit process, you will be sent a packet of documents that includes several forms you will need to fill out, and instructions on which documents to send to us. These might include:
1. Your most recent income statements, including any of the following that are applicable to you and anyone else named on your mortgage:
a. Pay stubs
b. Unemployment benefits
c. Social Security
d. Disability
e. Public assistance
f. Retirement plans
g. If you’re self-employed: Your most recent tax return or a year-to-date profit/loss statement
2. A list of your typical monthly household expenses.
3. Be prepared to explain your current financial situation and the problems that led to your past due payments.
Learn more about alternative payment plans.
Facing a possible foreclosure can be scary, but don’t get discouraged. We offer a wide range of alternative payment options to suit your circumstances, which you can read about in this article.
If you are a Newrez borrower, message us through our online chat function today and we can help you determine next steps. Together we can find a plan that minimizes damage to your credit and gets you back on track.
Do you think you need loss mitigation help? Connect with us now.
If you’re behind on payments, or worried you will soon fall behind, don’t wait to start the loss mitigation process. We want to find the best solution possible for you before it’s too late.
Equifax® is a registered trademark of Equifax Inc.
Experian® is a registered trademark of Experian Technology Limited.
TransUnion® is a registered trademark of Trans Union LLC.
Innovis® is a registered trademark of Innovis Data Solutions, Inc.
None of the above companies are affiliated with Newrez LLC.